Table 9.

Two-step system GMM for IQ and FP

Two-step system GMM
VariablesModel 12Model 13Model 14Model 15Model 16Model 17
EVATobin’s Q
CoeffSECoeffSECoeffSECoeffSECoeffSECoeffSE
Political stability−4.749(10.665)    −0.021(0.036)    
Rule of law  3.706**(1.550)    0.095*(0.050)  
Control of corruption    4.012**(1.813)    0.102*(0.057)
Beta−77.374(111.123)−149.187***(54.474)−166.144***(61.720)−2.743**(1.133)−4.699**(1.984)−5.072**(2.137)
Leverage−7.666(22.325)−5.427(8.963)−6.886(9.709)−0.113(0.200)−0.107(0.346)−0.154(0.348)
Firm size−20.012(17.718)−4.786(5.673)−2.684(6.638)−0.310***(0.102)−0.003(0.141)0.049(0.169)
Eco growth13.871(32.806)−6.657*(3.885)−6.140(3.888)0.072(0.072)−0.279**(0.132)−0.263**(0.127)
GDP per capita−0.000(0.001)−0.001*(0.000)−0.001*(0.001)−0.000(0.000)0.000(0.000)0.000(0.000)
Inflation−152.712(307.169)33.734(28.169)31.625(28.908)−1.293**(0.524)1.646*(0.944)1.580*(0.944)
Arellano–Bond: AR20.5210.1290.1330.2200.4000.408
Sargan test p value0.2410.5590.5970.4540.6760.670
Observations3,9753,1803,975

Notes:

Standard errors in parentheses; ***p < 0.01; **p < 0.05; *p < 0.1; Constant is included (not reported for brevity)

Source: Authors’ own creation

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